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You could say the same thing about the analysts at Goldman Sachs who say that crude oil is going to 200, all the while holding /CL contracts. Or brokers from L
by steveplace 18y ago
You could say the same thing about the analysts at Goldman Sachs who say that crude oil is going to 200, all the while holding /CL contracts.
Or brokers from Lehman saying their subprime exposure is contained.
I'm not trying to knock on these guys... they have a hard job. But they are not the best place to get opinion.
- icey 18y agoIt's not remotely the same thing. Goldman Sachs and Lehman were protecting their bottom line. RBS is making this announcement as a public service - They have nothing to gain from this at all.
- steveplace 18y agoReally? "A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist. The guy is an investment banker. He is placing directional exposure to the downside of the market. He has plenty to gain from it (as do I). Reports by analysts are by no means a public service. And your original question ("What should normal people do"): you can reduce your market exposure by reducing your directional bias (delta) against your market weighted (beta) portfolio. So buy puts, sell calls, sell OTM credit spreads, buy {SDS, QID, GLD, DUG, DXD} or something like that.
- icey 18y agoHmmm, on re-read, it would appear you are right. I stand corrected.